Chart of the Day: This Bullpen Name Is Sporting an 'Intriguing' Pattern
We have been watching this one closely as a big move up seems imminent.
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One thing you notice about the chart of Pro Portfolio Bullpen name Broadcom AVGO is the violent price moves following dips. That is likely due to a lack of supply in stock, as the company usually has a large share repurchase plan in place and uses those dips to buy stock back, helping to boost EPS numbers when they report. By the way, Broadcom will release its next earnings on June 5 after the close.
But the chart is quite intriguing here, with a bullish inverse head/shoulders pattern in place. This projects to an objective above $240 per share, and being now above the stubborn 200-day moving average is bullish as well. We also see that very quickly the candles have turned blue, or full-on bullish.
That wasn't the case a month ago for the GoNoGo indicator, which was flashing bearish all the way (early April, purple candles). Stochastics are strong as momentum is with Broadcom, and money flow is much improved (bottom pane). It seems a big move up is imminent here, so we have our eyes on this name.
At the time of publication, TheStreet Pro Portfolio had no positions in any securities mentioned.
